Oil trades above $50 amid financial confidence in upcoming crude rises
On Friday, American crude futures held above $50 a barrel, as the entire crude forward curve pushed higher that value, thus demonstrating that financial markets boast increasing confidence in the sector.
On Thursday, American West Texas Intermediate futures settled at $50.44 a barrel - the first settlement higher $50 since June 24. On Friday, they gained +6 cents, hitting $50.50 per barrel.
In the beginning of this week, Brent futures already moved over $50, and on Friday, they were trading at $52.57 a barrel at 0542 GMT, also gaining 6 cents.
Financial experts are assured that in sight there’s still no end for the current bullish run. Traders have been purchasing every short-term drop, a strategy, which has evidently been working perfectly so far.
The given trend could well continue for some time as after all oil’s fundamental outlook keeps improving.
Additionally, American crude stocks have just dropped below 500 million barrels.